Comprehensive Trading System/Methodology

[spreader_legger]

Thanks for that BBMAC,

I've still got a probelm with the re-entry setups however. I often find that pullbacks in the intermediate t/f rarely reach previous swing highs/lows and when they do, they subsequently break through. Like this morning for instance, at 8:32 I sold @ 1.4153 thinking that we had reached SBR/RBS area in the intermediate t/f, only to get stopped out at 1.4174. I did manage to sell again @ 1.4169 at 8:39 for a 30 pip gain to 1.4139. This, however, was simply from a recent trendline I had recently constructed ( i.e. not a previous swing high/low).


Thanks again for your help,



Stefan

 

[bbmac]

I've still got a probelm with the re-entry setups however. I often find that pullbacks in the intermediate t/f rarely reach previous swing highs/lows and when they do, they subsequently break through. Like this morning for instance, at 8:32 I sold @ 1.4153 thinking that we had reached SBR/RBS area in the intermediate t/f, only to get stopped out at 1.4174. I did manage to sell again @ 1.4169 at 8:39 for a 30 pip gain to 1.4139. This, however, was simply from a recent trendline I had recently constructed ( i.e. not a previous swing high/low).Stefan

Hi Stefan,

First off remember that intermediate t/f potential supp/res/sbr/rbs is always less likely to be as potentially strong as the higher trend t/f potential supp/res/sbr/rbs.

Remember too, (As widely discussed in the docs in your posession,) trying to trade a 1min re-entry at a 5min potential sbr/rbs zone when the set-up is opposed by clear reversal set-ups extending beyond the 5min t/f is more likely to see the set-up fail as at least a deeper pullback/reversal is indicated bvy the reversal set-ups extending beyond the intermediate t/f.

I see what you were trying to do and indeed there was 5min potential sbr zone 4158-64, previous swing lo) I did not see a re-entry to trend opportunity there at all re this system/methodology...ie by selling on the 1min the hanging man candle at 0832am london time you did so a at a H that was slightly higherthan the last LH of the downtrend on that t/f from where you would measure the hidden divergence. (it is alright the re-entry set-up coming at a H or even HH, (better at a LH) on the t/f it sets-up on so long as these are below the last obvious LH (lower high) in the downtrend on that t/f, and the set-up of course comes at a LH in the downtrend on the t/f into whose trend the re-entry on the t/f below indicates a possible entry after the pullback, ie the 5min in this case.

I appreciate the second entry you made at 4169bid off a t/line and coincidentally this looked like an 0837 Re-entry 2 set-up but it had hidden sequential osma div, and as you know all hidden divergence is immediate not sequential re this trading system/methodology.

You just need more practice...and follow the rules. If things don't set-up perfectly ignore them and wait for a perfect set-up @ pre-ident clear potential supp/res/sbr/rbs.


G/L

 

[spreader_legger]

BBMAC,

At 16:27, I went short at 1.4206 in what I believe was a reverse B set-up. Please let me know if this is right. After breaking through resistance area in M5, prices retraced back down following through.
I noticed the customery 4 bol flip (well diverged) and extreme oscillator readings (no hook in CCI)
The 10Bol then slowlyslipped back inside the other bols whilst OSMA went below the axis. MACD showed same peak regular immediate bearish divergence. One thing I noticed however, was that instead of continuing up, prices had actually retraced down ..... is this still Rev B?

Incidentally, I got out at 1.4178 mking 27 pips on the trade.


Thank you.

 

[bbmac]

At 16:27, I went short at 1.4206 in what I believe was a reverse B set-up. Please let me know if this is right. After breaking through resistance area in M5, prices retraced back down following through.
I noticed the customery 4 bol flip (well diverged) and extreme oscillator readings (no hook in CCI)
The 10Bol then slowlyslipped back inside the other bols whilst OSMA went below the axis. MACD showed same peak regular immediate bearish divergence. One thing I noticed however, was that instead of continuing up, prices had actually retraced down ..... is this still Rev B?

Incidentally, I got out at 1.4178 mking 27 pips on the trade. Thank you.

Stefan, in order to help me, in future could you please state what time your trades are, ie gmt, or bst (=gmt+1=current London time) or cdt=cet+1 (central european daylight savings time) etc...From your entry price (4206) I will take it you mean 1627pm London time (bst)

First of all I had this a 1623/24pm London time 1min Rev Extr with 5min Rev Aii seq (imperfect re 40bol not inside 20bol) and 30min Re-entry type 2 ...see screenshot below

The indicator set-ups came at the 'perfect' potential SBR c onfluence of the previous 1hr swing lo=previous support=potential sbr with 23.6% fib (4776-4109) and the then descending resistance trend line...see 2nd screenshot below, area circled in white.

Remember that for any regular divergence to be valid (whether it be seperate or same peak/valley) the price has to make an equal or higher high (bearish divergence) or equal or lower low (bulllish divergence) so in this example I cannot see how it could have been anything other than a Reversal Extreme set-up on 1min as price didn't make an equal or higher high after the original 4bol flip (at the Rev Extr 1623/24pm London time)

Hope this is clear

G/L

 

[spreader_legger]

Thanks for that,

Will try to be clearer as far as times are concerned in future. As for the setup, I had an inkling it wasn't quite Rev B. However, I was looking for that all ellusive hook in the CCI, but couldn't find it. Since this is one of the preconditions for a Rev Ext setup, I am still a bit confused.


Stefan

 

[bbmac]

Thanks for that,

Will try to be clearer as far as times are concerned in future. As for the setup, I had an inkling it wasn't quite Rev B. However, I was looking for that all ellusive hook in the CCI, but couldn't find it. Since this is one of the preconditions for a Rev Ext setup, I am still a bit confused.


Stefan

Hi Stefan,

I have replicated the 'characteristics of a Rev Extr set-up' from the Part II doc in your posession, see note i, and how a. applies; (hope this makes it clear;

Reversal Extreme

A Reversal Extreme (Rev Extr) set-up has the following characteristics;
* Well diverged 4 bol flip (10/20/40/60-ascending/descending order in bearish/bullish set-ups.)
* CCi hooked back into it’s own bol from an extreme reading at the Open of the trigger reversal candle. (see Note i)
* Osma and Macd at extreme readings
* Price breeches the 61.8 Support/Resistance Channel as a minimum.

Note i.
The rule of thumb in respect of the trigger reversal candle (re individual Price Action Analysis) is that the CCi hook should be back inside the bol at the Open of the reversal candle…The exception is a. when there is local divergence in the CCi and/or b. a whole reversal candle closes outside the 20bol. (Very often a. and b. can occur together.)

You really need to know these set-ups to the standard of instant real-time recognition if you are going to benefit from the system/methodology to it's full extent.

G/L

 

[spreader_legger]

Sorry about the questions ..... some further revision is perhaps in order!
i shall try to further digest the information given before pestering you with any more needless questions


Thanks again,



Stefan

 

[bbmac]

Sorry about the questions ..... some further revision is perhaps in order! i shall try to further digest the information given before pestering you with any more needless questions. Thanks again, Stefan

It's not a problem, a pleasure to help, but perhaps as you suggest a revision of the set-ups to the standard of instant real-time recognition is a good idea. essentially once you have got the reg immed sep peak/valley and/or same peak valley div for the rev set-ups and the hidden-div for the re-entry set-ups it's just a case of the bol patterns...

I have replicated the following from Part II doc;

Oscillator extremes or divergence with;

4 Bol flip [10/20/40/60]…………….. Reversal Extreme -or- Reversal type A

In all other Reversal set-ups, a 4Bol flip/bol convergence first, then as price develops -required divergence pattern as;-

10Bol comes inside 20Bol……………………………………………..Reversal Extreme ii
10Bol comes inside 20 & 40Bol,(possibly 60bol)….…………. Reversal type B
10 & 20Bol now come inside 40 & 60Bol, and flip again…..Reversal type C
10 & 20 &40Bol come inside 60Bol and flip again...........Reversal type A ii

And the following from Part III doc;

Re-entry type 1……. 10/20Bol flip…hidden divergence in Osma & Macd.
Re-entry type 2……. 10/20Bol flip…hidden divergence in Macd/regular immediate (same peak/valley) divergence in Osma (from initial hidden reading)
Re-entry type 3 ……. No Bols just clear hidden divergence @ extreme levels in Osma & Macd.
Re-entry type 4 ……. 10Bol and clear hidden divergence in Osma & Macd.
Re-entry type 5*……..3 or 4 bol flip with reg immed (separate peak/valley) Osma divergence and Macd/Cci extremes –with- next higher t/f Re-entry type 3 or 4.

G/L

 

[spreader_legger]

BBMAC,


I have been following your rules far more stricly today. So although I see fewer opportunities out there (probably a lot less than you are accustomed to) I have not made a losing trade today ..... hope this is not a fluke!

Here are a couple of trades I made before 14:00 London time

10:34 Sold at 1.46327 given a reversal B off resistance areas in M5, M30 & H1, exited at 1.46065

( I realise I missed a reversal B to the upside which happened earlier on)

at 13:59, I sold at 1.4709 to buy at 1.46867 with a Reversal type A in the trigger.l
This was a bit deceptive. I actually sold when there was slight bearish divergence in both OSMA & MACD, however the peaks ended up at roughly the same size upon price further retesting the resistance area .... so maybe I was in breach of your rules after all!

 

[bbmac]

BBMAC,


I have been following your rules far more stricly today. So although I see fewer opportunities out there (probably a lot less than you are accustomed to) I have not made a losing trade today ..... hope this is not a fluke!

Here are a couple of trades I made before 14:00 London time

10:34 Sold at 1.46327 given a reversal B off resistance areas in M5, M30 & H1, exited at 1.46065

( I realise I missed a reversal B to the upside which happened earlier on)

at 13:59, I sold at 1.4709 to buy at 1.46867 with a Reversal type A in the trigger.l
This was a bit deceptive. I actually sold when there was slight bearish divergence in both OSMA & MACD, however the peaks ended up at roughly the same size upon price further retesting the resistance area .... so maybe I was in breach of your rules after all!

Well done mate...

I had that 1034 london time as a 1032 Rev b with 5min Rev Aii @ pot res = prev 1hr sw hi/lo zone..nice set-up. I take it from the 1359 you mention you mean 1259 london time? from the price you detail, and yeh I had that down as a Rev A seq with 5min Rev Aii (re 1min set-up ok if osc peaks are equal as long as price is higher for div)

 

[spreader_legger]

..... Got pummelled today however ..... especially post US payrolls data

At 13:33, I thought I saw an extreme reversal in the trigger off 1hr resistance area & thought prices were going back down so I went short at 1.47927 ....don't know who started buying then, but prices spiked past resistance and I exited at 1.48388 (didn't even have a chance to take my stop).

I don't know whether the reversal set up stil applied, but when prices went back through Resistance area I went short again at 1.48227 (this was around 13:40) .... so at least I made most of my money back when I exited at 1.47820.

BBMAC, Did you manage to make any money straight after the figure?


Stefan

 

[bbmac]

At 13:33, I thought I saw an extreme reversal in the trigger off 1hr resistance area & thought prices were going back down so I went short at 1.47927 ....don't know who started buying then, but prices spiked past resistance and I exited at 1.48388 (didn't even have a chance to take my stop). I don't know whether the reversal set up stil applied, but when prices went back through Resistance area I went short again at 1.48227 (this was around 13:40) .... so at least I made most of my money back when I exited at 1.47820.

BBMAC, Did you manage to make any money straight after the figure?

I don't know why you entered short at 1333pm london time, there was no individual price action trigger on 1min until 1335pm in that Reversal extreme set-up, - Indeed at 1333pm CCi was not inside the bol at the open of that candle, and nor was it a reversal candle that closed outside the bol or effective local reg div in cci (the 2 possible exceptions for not having a whole reversal candle open whilst cci back inside bol) Bad execution there I'm afraid, not waiting for the set-up to develop properly and indeed not having a trigger candle for entry. As for a 1hr potential resistance zone, it was effectively the 1hr spike at the then current intraday hi of 4827area, hardly a strong potential resistance zone. 1335pm saw the 1min Rev Extr set-up perfectly formed with a 1min trigger candle for entry, and this set-up was supported by a 5min Rev Aii and a 15min Rev C.

Less than 1/2hr after NFP release and after the pullback indicated by the 1335pm set-ups detailed above, a 1min Re-entry type 2 set-up at the potential RBS/Supp confluence of the prev 5min minor swing hi zone with the then 38.2% fib of the intraday 4645-4844 swing, which also saw good pip gain, and was a 'with trend' entry consistent with NFP actual data.

Suggest you spend more time learning the set-ups to the standard of realtime instant recognition and also remember that the high probability trading opps are compised of the confluence of the 4 factors (pot supp/res, osc div/extremes and band devation, and an individual price action trigger for actual market entry.) If you enter with just 3 out of the 4 it is like sitting on a 3 legged stool instead of a 4 legged chair, --less stabe and don't be surprised if ou take a tumble. Also post NFP if you are going to trade against the direction the market takes reacting to the data, you really should look for the further confluence of set-ups on the t/f's above the trigger t/f, such as occurred at 1335pm, detailed above.

G/L

 

[spreader_legger]

Hi there,

Just wanted to share this trade with you.

This morning at 7:37(London time), I saw an extreme reversal formation in the trigger chart off previous 1hr resistance 1.47762.

I did go short @ 1.47676 and ended up with a small profit @ 1.477440.
During the trade, however, prices did retrace back to entry levels .... BBMAC, when do you know if the pullback is shallow, or if indeed there will be a more substantial pullback?

I also find that basing my trades on 1hr SBR & RBS levels yield better results than looking merely at
M5. I do recall you saying that at some stage. I do however end up most of the day twiddling my thumbs.

Thanks

 

[bbmac]

Hi there,

Just wanted to share this trade with you.

This morning at 7:37(London time), I saw an extreme reversal formation in the trigger chart off previous 1hr resistance 1.47762.

I did go short @ 1.47676 and ended up with a small profit @ 1.477440.
During the trade, however, prices did retrace back to entry levels .... BBMAC, when do you know if the pullback is shallow, or if indeed there will be a more substantial pullback?

I also find that basing my trades on 1hr SBR & RBS levels yield better results than looking merely at
M5. I do recall you saying that at some stage. I do however end up most of the day twiddling my thumbs.

Thanks

Hi Mate

Yeh I had that as an 0736am Rev Extr, with 5min Rev Extr @ pot res = prev 1hr sw hi zone x 3. As for knowing whether the pullback will be shallow, and using this particular example (perhaps for a 1min re-entry set-up into 5min (+) at 5min potential rbs zone) or deeper (perhaps for a 5min re-entry set-up with 1min reversal, into 30min then up trend) this depends on the strength of the resistance encountered and the number of reversal set-ups above the trigger time frame. There are no absolutes just indications. In fact in this case an 0748 1min Re-entry 4 resulted in a LH on the 5min intermediate t/f perhaps warning of a trend change to the then 5min uptrend...(which of course transpired.)

I tend to use 1hr previous swing hi/lo zones as the basis of potential supp/res zones for Reversal set-ups and the 5min potential sbr/rbs zones for 1min re-entry set-ups, and doing this in my trading session this morning I noted the following set-ups (sorry first 3 are written in Spanish but you'll get the idea,)... so I am far from twiddling my thumbs - lol. This is not to say I traded them all but I did have 5 trades in that session from the list below.

The times are london times;

0734 Rev Extr, no 5min @ pot res = anterior 1hr alto zonas y 50% fib...no pips disponible
0736 Rev Extr con 5min Rev Extr con 15min Rev A seq @ pot res = anterior 1hr alto zonas , +10= pips disponible
0748 Re-Entrada 4 (5/30min tendencia en positivo, 5/30Macd vale @ L/HL) @ pot RCS = ayer alto y 1hr anterior alto zonas (mejor con 5min pero solamente 1Hr)..+10pips disponible. (cuadro bajo)
0831 Re-entry 1 (no 5min down trend to enter, 30min Macd not ok, ) @ pot sbr = not i.d saw +30+
0844 Rev Extr (imperfect re 60 bol not quite inside 40bol) No 5min supoporting @ pot supp = 1hr asc supp t/line 2nd test, saw +5 best
0854 Rev B, No 5min @ pot supp = prev 1hr sw lo zone x 2 and 1hr asc supp t/line - 2nd test, saw +10+
0908 Re-entry 2 (imperfect re Macd hidden div) (into 5min downtrend, 5/30min Macd ok, @ H/LH) @ pot sbr = prev 5min sw lo zone, saw +30+
0924 Rev Aii 5min Rev Extr ii (imperfect re 10bol not inside 20bol at entry) @ pot supp = prev 1hr sw lo zone x 5 and Dly S1 minor pivot, saw +20
** 1030 Uk data **
1032 Re-entry 4 (into 5min downtrend, 5/30min Macd ok, @ H/LH) @ pot scr = not i.d,..saw +20+
0949 Rev A, 5min Rev A (imperfect re not reg immed-sep valley div in osma) @ pot supp = extreme of prev 1hr supp zone-prev sw lo x 5 and y/day lo...saw +30+
1026 Rev A, 5min Re-entry 4 (into 30min weak downtrend, 30/1hr Macd ok @ H/LH) @ pot sbr 1hr = not i.d...saw +30+
1055 Re-entry 2 (into 5min downtrend, weak 30min downtrend. 5/30min Macd ok @ H/LH) @ pot scr = prev 5min sw lo zone & 38.2% fib 4779-4624, +20+ available

G/L

 

[bbmac]

In respect of 5min previous swing hi/lo zones = potential supp/res, these are of course potentially weaker than those on the 1hr chart. As I say in post above I tend to use 5min sbr/rbs in a 5min (+) trend only (for 1min re-entry set-ups, all other conditions being correct.

The only times I will use a 5min previous swing hi/lo zone (preferably with confluence of other supp/res factors -and/or several tests) is for a 1min Reversal set-up with no supporting set-ups above that trigger t/f and in overall price action conditions that suggest a ranging market to the intermediate and possibly trend t/f (5min and 30min.)

G/L

 

[montrove]

¿bbmac in spanish?.................Cojonudo (slang word: splendid, wonderful.....)
May be you´ll understand better my questions.

 

[bbmac]

¿bbmac in spanish?.................Cojonudo (slang word: splendid, wonderful.....)
May be you´ll understand better my questions.

Si, posible

Buena suerte

 

[spreader_legger]

Just 2 trades today unfortunately ... I'm trading whilst working on my research paper

At 8:01, there was a Reverse A formation. with support at H1 Bought at 1.44966, Sold at 1.45234 for a 27 pip profit

13:46 Reverse Seq A formation recent top in H1. Sold @1.45928, Bought at 1.45716 for 21 pips profit.

My success usually follows a daily pattern, with several consecutive winning or losing trades ..... Unfortunately still some distance away from the 90% success rate target you set yourself for this methodology BBMAC!

 

[d_7_d]

Imperfect 3m reversal with a supporting 15m re-entry on the euro futures.

60m RBS

15m Re-entry Type 1

3m Reversal Type ?